The dueling guild is set up to be held like a tournament, with a 250 gold prize, "champion of the duel" status, and each round nobles are eliminated. It does display honor and is not an abuse of the system.
Yeah, it really is an abuse of the dueling system.
However, the large desire for a "swords for sport" option drove the implementation of the Training Match system. I highly recommend that you delay your "dueling guild" until the training match feature is implemented on stable islands. Using the dueling feature for sport is, without any doubt, an abuse of the feature. This type of abuse is why the "First Blood" option was removed.
